Sunday, September 27, 2009

Fair Trade Not So Promising...

'Saw this article in Time about Fair Trade and how it really seems to have hit the limit of good it can do. Seems as if direct trade (direct transaction between farmer and grower) stands as the only really lucrative alternative for the farmer...

6 comments:

I can see where your opinion is coming from. I've been working in fair trade for quite some time now, and yes.....it seems to be taking a turn for the worst. There are new developments in fairtrade however, that may or may not help bring the notion back. Only time will telL!

I have seen similar articles about Fair Trade coffee. They only pay 10% more than standard companies, to the farmers, leaving them only .50 per pound while Starbucks is charging at least $13.00 for the same pound. It is outlandish even if you figure in transportation costs. Unfortunately people that live in the poorest and most unstable countries are the ones that are the most exploited.

I have read similar articles as the one in Time Magazine. It turns out that fair trade coffee is not as fair as it claims to be to the farmers. When they only get .50 per pound for their coffee, and Starbucks charges $12 per pound to sell it, it is clearly a case of exploitation. It is a shame that farmers who live in the poorest and most unstable countries in the world are also the most likely to be taken advantage of.

I wondered recently if fair trade prices were causing issues because I read that prices were very high and that they were exceeding fair trade minimums. My grasp is nowhere near strong enough to be sure, but it sounded as if there was a possibility that fair trade locked in prices were hurting the farmers...but somehow I doubt that is correct.